The popularity of Bitcoin is increasing day by day as more and more people get aware of the benefits and opportunities that cryptocurrency has to offer to the world. Today, the demand for cryptocurrency is much higher than the past few years when many were not educated about this new digital currency. One very common issue or excuse that stops people from investing in Bitcoin is that they don’t understand the Blockchain technology used behind it.
However, it is very much possible to purchase and use Bitcoin even if you don’t understand the technology behind it. The same way you use the internet without understanding the technology behind it, you can use Bitcoin without understanding the technology behind it even though it is better if you invest time and effort to understand it.
Keep reading if you want to educate yourself about Bitcoin. In this article, we will guide you about everything you need to know before investing in cryptocurrency. We will discuss the following important terms:
- What is cryptocurrency?
- Types of cryptocurrency
- Important things to know before buying any cryptocurrency
- How to get started with bitcoin trading in Pakistan?
We will answer all your queries and explain everything you need to know. So, let’s get started.
A cryptocurrency is a form of virtual or digital currency that is protected by cryptography. Basically, the word crypto as a prefix means hidden and the word graphy as a suffix means writing. Usually, the term crypto refers to different cryptographic techniques and encryption algorithms that help in securing communication and information through the use of code. With the help of these techniques, the data is protected and shared only with the intended person.
Fundamentally, cryptocurrencies are decentralized networks that are based on blockchain technology. It allows secure online payment without the interference of any third party. Bitcoin is not controlled by any central authority or bank which makes it immune to the government or any third-party interference.
Types of Cryptocurrency
Currently, there are many different types of cryptocurrencies available in the world. And Bitcoin is the most valuable digital currency across the world. Following are some of the types of cryptocurrencies, each having its own feature, specification and purpose.
These are a few of the popular cryptocurrencies available across the world.
If you are a beginner or a first time Bitcoin investor then you need to know the following things before investing in any kind of cryptocurrency trading:
Get a Digital Wallet
The first thing you need to do before investing in bitcoin trading is to get yourself a digital wallet. This digital wallet will work exactly like a bank account for you where you can store your digital currency and can easily keep track of all your transactions. There are many different types of wallets available and you can choose any that suits your requirements. Every wallet comes with a lot of flexibility, freedom, and a greater influx of revenue.
Connect Your Digital Wallet With a Bank Account
Another important thing that you need to do as an initial investment is to connect your digital wallet to a bank account and credit or debit card to buy any kind of cryptocurrency. You can easily buy or sell any digital currency, once you link your digital wallet to a bank account.
Link to a Cryptocurrency Exchange
As a new investor, you need to invest time and effort to research different cryptocurrency exchanges as every cryptocurrency exchange is different in terms of reputation, processing fees, reliability, exchange rates, security for trading, and cryptocurrency availability. Do your research and select the one that serves your needs in the best possible way. Also, it is important that you take guidance from an experienced person who has a good understanding of bitcoin trading and who can guide you step by step in each step.
Step # 1: Download the App
The very first step is to go to the website “www.binance.com/en” or download the Binance app to create an account.
Step # 2: Create and Verify Your Account
The second step is to create your account and verify it. There are three different levels of verification including basic, intermediate, and advanced level verification. With the initial basic level verification, you can withdraw up to USD 5,000. Whereas, with the advanced verification you can withdraw up to USD 1,000,000 and also can get access to P2P trading. For advanced verification, you need to submit scanned copies of your government-issued ID and provide your facial verification. Usually, the complete process of verification effortlessly takes around 1 hour only.
Step # 3: Buy Crypto P2P Trading
Now, when your account is verified, you can start buying bitcoins through the option of “Buy Crypto P2P Trading”. Remember that you can’t buy any digital currency without buying the USDT by Tether which is a stable currency used for buying any kind of digital currency.
Step # 4: Select a Trader for Purchasing the USDT
Now, the fourth step is to enter the desired amount in Pakistani Rupees (PKR) and select a trader for purchasing the USDT. Click on the option of “Buy USDT” and proceed step by step. It is important to understand that you won’t be able to use any kind of card for the payment, rather you have to send the amount to the bank account of the seller directly.
Step # 5: Recieve the USDT
Once you receive the USDT then you can easily purchase Bitcoin equal to its value according to the current exchange rate.
Step # 6: Send Funds to Seller
Now to proceed further, just click on “Buy BTC” and verify Binance’s KYC. After placing your order, you have to send the funds to the bank account of the seller. You can easily find the bank details of the seller from the seller’s info. To stay on the safe side and avoid scammers, it is always wise to buy bitcoin from verified traders who have higher seller ratings and should have up to at least 300 transactions.
Step # 7: Send the Proof of Transaction
Finally, when you complete the process of transferring the money then send the proof of transaction through the chatbox. On the other hand, the seller will release the asset as soon as he acknowledges the transaction. Remember that you can also appeal with Binance if the seller doesn’t release the asset.